The Hunt! Finding your new home.

By Shawna Sanders

In the first two parts of our series, Helpful Hints for First-Time Home Buyers,  we covered getting your finances in order and finding the lender and real estate agent you want to work with. Now it’s time to get to the fun part of the home buying process, the hunt!

Hunting for your new home is exciting. You may have already spent time looking online at listings and, if your move is close to your present location, have been taking note of some homes in the area that are on the market. The volume of homes on the market can make it difficult to narrow down your options. The key is to prioritize the importance of certain factors when making the final decision.

Price

For the majority of people, price is the number one determining factor in deciding on a home purchase. According to a 2018 Zillow report, 23% of homebuyers go over their intended budget. If you’ve been following along in our series, you already know that working out a monthly budget is important to determining how much of a payment you can afford and you already have your pre-approval on your mortgage that has set your maximum loan amount. Now it’s time to put all that together using our mortgage calculator to get a better idea of what that monthly payment will look like when factoring in insurance and property taxes. Ensuring that you keep the total monthly payment within your budget even if you are approved for a larger loan is key to eliminating the future stress of overstretching your finances.

Location

Next to price, location is another key factor in determining which house to buy. Are you looking for a shorter commute to work, or are you willing to drive a little further in order to have a larger yard? Is there a particular neighborhood that you just have to live in? If you have young children (or plan to) living in a good school district may be your biggest priority. No matter what drives your priorities on location, any of these things could have a direct impact on your home’s resale value.

Room for Change

According to the National Association of Realtors, the average homeowner in the Dallas-Fort Worth area stays in their home for about ten years. A lot can change in ten years. When you are searching for your new home, keep in mind how long you plan to stay and what changes you foresee happening in that time. Do you plan to start a family and need a larger home than you currently have? Or maybe you’re approaching retirement and it’s time to down-size. These life changes will have an effect on things such as the number of bedrooms or whether a pool is a necessity for your family. It’s up to you how important these amenities will be to you.

Condition

Most people are shopping for a move-in-ready home, or at least one that just needs minor cosmetic changes such as new paint or flooring. However, there is definitely a savings for people who invest in a home that is in need of some repairs. Sometimes this is a good option if you don’t have to move into the new home immediately and if the cost of the repairs to be made don’t outweigh the potential gain in value of the home. If this is the direction you plan to go, consulting with a professional is advised. Visit our recommended home repair professional page to connect with top vendors.  We also offer Renovation home loans like the Homestyle and the FHA 203K that allow you to buy a distressed or home in need of renovating and include the cost of update all in one home loan.

Prioritizing these factors will help you to focus on only the homes that have the details that are most important to you. It may also be helpful to make two lists, a must-have list and a want list. Determining what things are most important to you now will make finding your perfect home much easier. Happy hunting!